“Disarming this is more difficult than facing hyperinflation, because this is a phenomenon that comes, destroys and leaves you in another scenario. Chronic inflation is something that, when it gets inside, can affect you for decades,” he commented on the scenario. inflationary and remarked that in the search for a solution to this problem, he “sees the government as weak”.
Fair Prices
Regarding the program that the Government launched last week, the economist remarked: “It could be a component of a gradual disinflationary program. But you are telling a lot of companies to raise prices 4% per month for 4 months in a row. But you are devaluing 7% per month. You are inviting a producer to lower his price in dollars 3% per month for four months. It does not sound to me that a producer wants to play that.”
However, he stressed: “Perhaps it will have an impact and a slowdown in the indices, but there are two issues: this can occur with a heterogeneity that hits those who have less the most, and I am concerned about how we got out of this mess in March Because we accumulate tensions that I am losing against the dollar, against wages, against costs.”
In addition, he questioned the implementation. “There are shops where it is more difficult to monitor an agreement. Supermarkets are grouped by cameras and there are four or five chains, it is difficult for Chinese supermarkets to get on board. And please, no one thinks of taking out their cell phone in a Chinese to use Prices Just because the butcher’s knife is going to fly away,” he joked.
Regarding the non-inclusion of local markets in the agreement, Ágis remarked: “70% of what we Argentines consume is bought in those surfaces, Chinese stores and stores. Going to a supermarket today and doing the purchase of the month is a luxury of rich”.
inflationary anchor
“Today inflation travels at 6 or 7% per month. That is because some things go to 10 or 12, others to 3 or 4. If in the next four months the dollar is going to go to 7%, the rate is 6 .5%, parity is at 8 or 9, for inflation to go to 4 there are things that have to go to 1% or 2% per month. Important things, not small ones, so that the average gives you 4,” he warned about How to curb inflationary inertia.
In this sense, he stressed: “There is no anchor. The anchor is something that you put below the average and it drags. In the middle of convertibility you put the very expensive rates but then you nailed the dollar to the average, inflation started 4% per year”.
“Going to 4% inflation seems like a good intention to me, but I don’t see that the variables behave that way,” he said about the budget projection.
“If you want to curb inflation, but you continue to have that nonsense that renting is expensive, buying is expensive, but services are cheap, it will be unsustainable because it continues to generate imbalances. And there is no agreement within the Government where to go. What Massa did in these months is give each one a little reason. The problem is that this is a Frankenstein, it is not an economic program”.
News in development.-
Source: Ambito
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